FAQ’S

What is a building file of appartement in tel aviv?

A building file includes all the documents pertaining to the building in question, including construction dates, plans, and permits; legal suits; and all other relevant information. It is very important to compare the actual building with the construction permits that were granted in the past, and to see whether there is any discrepancy between them. Building files are under the jurisdiction of the Tel Aviv-Jaffa Municipality and can be acquired easily, online.

What is a land registry extract?

A land registry extract (“Tabbu Form”) identifies the property. It shows who the property’s legal owners are and what, if any, restrictions or warnings exist with regard to the property. The extract includes whatever mortgages, encumbrances, and attachments may exist, as well as possible plans by the authorities to expropriate part, or all of the land, or personal issues that may be in the process of adjudication in the family courts, such as divorce, wills, and so on.

What is TAMA 38?
Tama 38 is a national outline plan for the reinforcement of existing buildings in order to prevent possible seismic damage. Its aim is to encourage the reinforcement of existing buildings by allowing additional construction, on condition that the entire building is reinforced.

TAMA 38 applies to buildings that have construction permits predating January 1, 1980, with the exception of buildings that are exempt under Israel Standard 413: Design Provisions for Earthquake Resistance of Structures. The regulations allow for the reinforcement of buildings with construction permits that were built on or after January 1, 1980, but without additional construction rights.

What is the difference between a purchasing group and a developer’s project?
A purchasing group refers to a group of individuals who associate in order to buy land and build a cooperative residential project on it, independently of a contractor or a developer. Usually a professional locates the land, buys a purchasing option from the land owner for a given period, and, during that period organizes a group to buy the land.

The aim of this method is to save the cost of the developer’s profit on a project built by a contractor, and thus to save on the price of the apartment. However, in such projects, the group members themselves assume not only the potential benefits, but also the risks involved with regard to ultimate costs and delivery dates.

In a developer’s project, on the other hand, the contractor is responsible for the purchase of the land, the planning, the obtaining of appropriate construction permits, the payment of various development fees, and, of course, the financing and construction of the project. In this case, the contractor commits to a final price and a pre-determined date of delivery. Although this method is safer, it is not free of risks.

In both cases it is important to know such things as who is responsible for the project, what their experience is, which projects they have already built, what guarantees are given to ensure the completion of the project, and how the bank financing works.

What fees and taxes are involved in the sale and purchase of a home?
Purchase Tax, Land Betterment Tax, and a Betterment Fee are the three main taxes and fees involved in the sale or purchase of a home.

Purchase Tax is levied on the purchaser of a property. There are many purchase tax calculators on the Internet, so it is possible to determine the amount of this tax easily.

Land Betterment Tax is paid by the seller of the property. This is actually a tax levied by the state on the real capital gain expressed by the difference between the property’s value on the day it was bought and its value on the day it was sold. To find out whether and how much Land Betterment Tax must be paid, it is advisable to consult a lawyer or a professional tax consultant.

The Betterment Fee is a payment that a property owner must pay if improvements in the property increase its value. The property’s value will increase in one of three cases: 1. If a plan has been approved for the expansion of the property; 2. If an easement has been granted allowing for the betterment of the property (for example, an area plan that grants buildings additional construction rights); and, 3. permission has been granted for non-standard use of the property, such as for industry or commerce. Before the property is sold, it is advisable to check with the Betterment Fee Department in the municipality whether any payment is owed.

How to ascertain the area of the apartment?
Over the years there have been different methods of registering the area of an apartment. Consequently, three different sizes may appear with regard the area of a single apartment: the area of the apartment listed in the land registration; the area listed on the municipal rates form; and the “effective” area (“the floor-mopping area”). It is very advisable to check these details, to understand the differences among them, and to be aware of their origins.

Since 2008, contractors and developers have been required to note the apartment area in the sales contract. By law the apartment area (the “security-door area”) is defined as the interior area of the apartment plus the area of the exterior walls (of the apartment only) and half the area of shared walls. Included in this count are covered balconies, a security room, and covered service areas that are physically adjacent to the apartment, to which there is direct access from the apartment, and which do not have an entrance from another apartment. It is important to understand that the effective area (“the floor-mopping area”) will be smaller than the area of the apartment as declared in accordance with the law, as described above.

What is a building slated for preservation?
The preservation of buildings is an architectural-engineering act aimed at preserving, restoring and renewing buildings of historical, cultural, and/or architectural importance. Tel Aviv has 2,000 buildings slated for preservation, of which some 1,000 are included in the new Preservation Plan, TA/2650b.

Over the years, the Tel Aviv-Jaffa Municipality has determined guidelines for various levels of preservation: 1. An A-level structure may not have any additional construction; 2. A B-level structure may be preserved, in which case it will be possible to use existing construction rights to the fullest; and 3. a C-level structure may, in some cases, be destroyed in its entirety, with certain of its elements restored in the new building that is erected in its stead.

The new preservation plan, TA/2650b (which, as stated, pertains to 1,000 structures) has two levels of preservation: 1. structures with ordinary preservation, for which it is possible to use existing construction rights to the fullest; 2. structures with strict preservation — no construction may be added, but construction rights may be transferred to other structures.

When is it advisable to make inquiries about a mortgage?
Many people seek to purchase an apartment without knowing whether a mortgage will be approved for them and, if so, for what sum of money. This could cause them to lose out on a property at the decisive moment. Therefore, to avoid unnecessary disappointment, it is very advisable to obtain approval in principle for a mortgage from a lending body, such as a bank or an insurance company, at the very beginning of your search for an apartment. This is a simple process and can be completed within a few days. It is also an important ingredient in determining your purchasing budget.

Who takes care of the maintenance of a building?
When considering the purchase of an apartment, it is very important to know how the building in which the apartment is situated is managed. In small buildings, a committee from among the apartment owners is elected, but there is also a growing trend toward hiring outside management companies. In principal, therefore, it is advisable to speak to the people living in the building to understand how this, and other, communal matters are managed.

Residential towers are generally managed by management companies. The management fees are often thousands of shekels a month, especially if the building has a pool and a 24/7 doorman services. It is clearly important to take this expense into account when considering the purchase of an apartment in a tower. It is also important to know how long the company has been managing the property and whether the tenants are satisfied, or whether they intend to switch to a different company.

How can one find a professional real estate consultant?
As in every field, there are unprofessional real estate consultants and there are those who are professional, trustworthy, and efficient and can save you a lot of money. So how does one find them?

First, rely on the recommendations of friends and acquaintances who have had positive experiences with real estate consultants. Second, it is important to interview prospective consultants, to learn more about them: Do they have Ministry of Justice realtor’s licenses, and since when? How long have they been working in the field? What is their area of specialization? Do they work as real estate consultants full-time? Where is their office? Do they usually cooperate with other realtors? How well do they know the market? (Ask for a description of the supply and demand of properties in a given area, price levels, what has been sold recently in the area, etc.) Ask for contact information for clients with whom they have worked in the past.

A professional, reliable, and efficient real estate consultant with expertise in residential properties can and will want to help you conclude your real estate deal in the most correct and suitable way for you.

Good luck!